Radio City shows market share gain of 2% in Q1FY21 and maintains its leadership in ad volumes at 21%

Music Broadcast Limited (MBL), India's 1st Private FM Radio Broadcaster, has reported its Financial Results for the Quarter ended June 30th, 2020.

Key Highlights - Q1 FY21:

- Top line of Rs 14.4 Crores
- EBITDA at Rs. (15.2) Crores
- PAT was Rs (13.9) Crores

Commenting on the results Ms. Apurva Purohit, Director said: "Covid-19 pushed the world's economy into a tailspin in Q1. The current economic environment in India, aggravated by the fear and the uncertainty that is present in people's minds, will take time to recover and will continue to remain subdued for some more time before we begin to see any improvement. The M&E sector was badly hit by the lockdown and the sudden stoppage of supply and consumption of all goods and services during this time. The Radio Industry like the rest of the media industry registered a de-growth of more than 75%.

In these adverse times, Radio City has been working on several initiatives which helped us outperform the industry and gain market share by 2% to 21% in ad volumes.During these testing times, we were able to secure long term deals aggregating to 25% of last year's turnover giving us some revenue visibility for the current year. We have also focused on tactical deals like Corona awareness campaigns, special days which contributed more than 30% to this quarter's revenue. In this quarter we also saw more than 1,000 clients using the Radio medium since it is amongst the most inexpensive, for the first time. Radio City was able to garner a market share of 36% amongst this set which is again the highest in the industry.

Our focus on strengthening our balance sheet during these tough times helped improve our cash reserves to Rs 238 Crores as on 30th June as compared to Rs. 220 crores as on 31st March 2020.Our efforts to improve efficiency led to reduction in costs by 38% as compared to Q1 FY20 and by 29% as compared to Q4 FY20 and reduce our receivables by 9 days.

With a strengthened Balance Sheet, better than industry performance, and a leadership position, we are confident of a faster and stronger recovery when the economic environment improves."

Shares of Music Broadcast Ltd was last trading in BSE at Rs.15.8 as compared to the previous close of Rs. 15.8. The total number of shares traded during the day was 19536 in over 100 trades.

The stock hit an intraday high of Rs. 16.3 and intraday low of 15.8. The net turnover during the day was Rs. 314026.

Source : Equity Bulls

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